Smdll is a native DLL. Thanks to Ge van Geldorp for figuring this out.
Modified: branches/xmlbuildsystem/reactos/lib/smdll/smdll.xml

Modified: branches/xmlbuildsystem/reactos/lib/smdll/smdll.xml
--- branches/xmlbuildsystem/reactos/lib/smdll/smdll.xml	2005-05-07 06:09:56 UTC (rev 15071)
+++ branches/xmlbuildsystem/reactos/lib/smdll/smdll.xml	2005-05-07 07:46:54 UTC (rev 15072)
@@ -1,4 +1,4 @@
-<module name="smdll" type="win32dll" baseaddress="${BASEADDRESS_SMDLL}" installbase="system32" installname="smdll.dll">
+<module name="smdll" type="nativedll" baseaddress="${BASEADDRESS_SMDLL}" installbase="system32" installname="smdll.dll">
 	<importlibrary definition="smdll.def" />
 	<include base="smdll">.</include>
 	<define name="_DISABLE_TIDENTS" />